India Payment Services Market Research Report : Ken Research


New Delhi ,

The report titled “India Payment Services Market Research Forecast to 2023 – By Online Payments, M-PoS, IMPS, AePS, USSD-BHIM Transactions, UPI, M-Wallet, PoS Terminal, Payment Gateways, CUG Cards and Payment Security Segment”, provides a comprehensive analysis of payment services , m-wallet, payment gateway, mPOS, POS Terminals and Payment Security market in India.  The report covers the overall competitive landscape; government role and regulations, growth drivers, trends and developments. The report concludes with market projection for future for every single market described above highlighting the major opportunities and cautions for overall India payment services market.

India Payment Services Market

India payment services market which has traditionally been dominated by cash witnessed advancement towards digital transactions both in terms of value and volume during demonetization phase in India. Regulatory authorities such as the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) play a major role in establishing guidelines for effective working within India’s payments landscape. In India, cash still dominates the entire payment landscape in India and is expected to lead the majority share in future.

In India, merchant payments were observed to be the central aspect of all payment services for large enterprises as well as MSMEs, which are increasingly becoming integrated with PoS and mPoS terminal devices. In addition to this, emergence of consumer mobile wallets in India has helped consumers with person-to-person funds transfer, therefore facilitating small value transactions. Surge in growth of electronic payments in India, along with rising E-commerce and M-commerce transactions are further expected to give a boost to numerous entities including payment gateway service providers and payment aggregators that facilitate online payments in the country.

India M-Wallet Market

Compared to other payment modes in India, M-wallet service providers have emerged as the most significant contributor in promoting electronic payments in the country owing to the increasing usage of internet and smartphone users in the country. In terms of transaction volume, the semi-loop wallet type established itself as market leader in India m-wallet market and was followed by closed loop wallets in FY’2018. Some of the major companies having semi-closed wallets include Paytm, Mobikwik, Oxigen wallet and others whereas, closed wallet type companies include SBI E-Buddy, HDFC PayZapp and telecom operators such as Airtel Money, Jio Money, Vodafone M-Pesa and others. Social gifting is on the verge of becoming a popular trend among young tech-savvy customer base which could drive money transfer through mobile wallets, especially on festive occasions in near future.

India Payment Gateway Market

Some of the leading payment gateway companies in India include CC Avenues, Payu Money, EBS, Billdesk and others. India payment gate-way market was majorly driven by demanding factors from consumers such as faster checkout and digital security. Increasing cybercrimes or threats have become a major key factor for payment gateway service providers, as it has affected the company’s profitability and revenues. By end users, large enterprises were observed to dominate the Indian payment gateway market owing to a higher penetration in the country’s online payment ecosystem in comparison with SMEs. It has been forecasted that the merchant’s dashboard would become key focus for market leaders such as failure rate analytics and chargeback dashboards in near future.

India PoS (Point of Sale) Terminal Market

PoS terminals were launched as a computerized replacement of cash register where customers can make an online transaction with the help of their debit or credit cards. India PoS terminal market was heavily dependent up on the card acceptance infrastructure consisting of ATMs and PoS terminal devices. In terms of number of device installations, metro cities were witnessed to dominate India PoS terminal market majorly due to higher usage and penetration of debit and credit cards in these cities whereas, non-metro cities were observed to catch up by spreading awareness regarding PoS devices enabled with Aadhaar enabled Payment System (AePS) in rural India. Large retail formats, such as Big Bazaar, Shoppers Stop and other malls were observed to install traditional PoS systems that work on GPRS technology. Introduction of QR code bases system and NFC payment technology is further expected to give a boost to the country’s PoS terminal market over long term.

India M-PoS (Mobile-Point of Sale) Terminal Market

An increasing number of medium sized and large sized merchants were witnessed as early adopters of tablet based mPoS devices. As large number of merchants has already been a part of a wide user base, banks became a suitable partner to reach out to target customers. The market observed a major gap in the demand and supply of mPoS hardware during demonetization phase which resulted in increased number of manufacturers for several mPoS companies. Integrating with sensors, video monitors and cameras which would provide smart advertising to customers based on environment and purchasing trends.

Key Segments Covered

·         India Payment Services Market

Ø  By Desktop Payments and Mobile Payments

Ø  By Type of Industry (Financial Services, Retail, Online Travel and Others)

·         India M-Wallet Market

Ø  By Transaction Type (Semi-Closed Loop and Open loop)

Ø  By End-User (Consumer and Enterprise)

·         India Payment Gateway Market

Ø  By End-User (Large Enterprises and SMEs)

Ø  By Type of Payment Modes (Net Banking, Debit Cards, Credit Cards and Others)

Ø  By Type of Transactions (E-Commerce, Financial Services, Utility Bills and Other Online Services)

·         India PoS Terminal Market

Ø  By Number of Terminals (Active Terminals and Inactive Terminals)

Ø  By Metro Cities and Non-Metro Cities

Ø  By End User Industry (Large Enterprises, SMEs and Micro Merchants)

·         India M-PoS Market

Ø  By Number of Terminals (Inactive Terminals and Active Terminals)

Ø  By Type of Distribution Channel (Retail Channel and Direct Sales)

Key Target Audience

·         Banks and Financial Institutions

·         Cash Reconciliation Companies

·         Payment Aggregators

·         Payment Network Companies

·         Payment Interface Companies

·         M-Wallet Companies

·         Payment Gateway Companies

·         PoS Terminal Companies

·         M-PoS Terminal Companies

Time Period Captured in the Report:

·         Historical Period – FY’2013-FY’2018

·         Forecast Period – FY’2018-FY’2023E

Companies Covered:

·         M-Wallet Companies

Ø  Paytm

Ø  Mobikwik

Ø  Freecharge

Ø  Oxigen

Ø  Telecom Operators (Jio Money, Airtel Money, Idea Money, SBI Buddy and ICICI Pockets)

Ø  Others (ITZ Cash, Citrus Pay, PhonePay and other bank wallets)

·         Payment Gateway Companies

Ø  Billdesk

Ø  Ingenico

Ø  PayU

Ø  Others (CC Avenue, ATOM, Razor Pay, PayPal, Instamojo, VPL and MPL)

·         PoS Terminal Companies

Ø  Ingenico ePayments

Ø  Verifone India

Ø  AGS Transact

Ø  PineLabs

Ø  PAX Technologies

Ø  Ezetap

Ø  Itzcash

·         M-PoS Companies

Ø  Ezetap

Ø  M-Swipe

Ø  Paynear

Ø  Mosambee

Ø  AGS Transact

Ø  Others (Bijlipay and Visiontek)

Key Topics Covered in the Report

·         Executive Summary

·         Research Methodology

·         India Payment Services Market

·         Regulatory Framework in India Payment Services Market

·         Credit and Debit Card Coverage, FY’2013-FY’2018

·         Cross Comparison of Different Payment Modes (IMPS, AePS, USSD-BHIM and UPI) in India Payment Services Market

·         Immediate Payment Service (IMPS) Consumer Payment Landscape

·         Aadhaar Enabled Payment System (AePS) Consumer Payment Landscape

·         Unstructured Supplementary Service Data – Bharat Interface for Money (USSD-BHIM) Consumer Payment Landscape

·         Unified Payments Interface (UPI) Consumer Payment Landscape

·         India M-Wallet Market

·         India Payment Gateway Market

·         India Point of Sale (PoS) Terminal Market

·         India m-PoS Market

·         CUG Cards / Prepaid Closed Loop Cards

·         Cloud / Security Outsourcing in Payments Technology


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